Jan NettigThe Czech-based agri-food conglomerate, Agrofert, under the leadership of its former prime minister, Andrej Babis, has successfully acquired a 65% stake in the Romanian grain and oilseeds trading company, East Grain. This acquisition is being hailed as one of the most significant foreign investments in Romania’s agribusiness sector over the past year.
Libor Nemecek, the M&A and corporate finance director of Agrofert, expressed the company’s enthusiasm about leveraging its three-decade-long expertise for the benefit of the East Grain group. He believes that this strategic investment will pave the way for East Grain to tap into new market opportunities, enhance its operational capacities, and further solidify its market presence. The acquisition was primarily executed through a capital increment and is deemed as the paramount external investment in the Romanian agribusiness sector in recent times, as highlighted in an official press release by East Grain.
Established in 1993 by Andrej Babis, Agrofert stands as a dominant force in Central Europe’s agri-food landscape, boasting a vast network of over 220 subsidiaries and employing around 31,000 individuals. On the other hand, East Grain, which offers a plethora of services ranging from logistics and storage to processing and integration, has established its footprint not only in Romania but also in Hungary and Serbia. Over the past five years, the company has witnessed a robust combined average growth rate (CAGR) of 22.5%. This new infusion of investment is anticipated to bolster East Grain’s expansion and diversification endeavors.
The article was originally authored by Iulian Ernst for Romania Insider.
